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SpaceX Stock Plunge Wipes Out $600 Billion After Cursor Deal Spooks Investors
The all-stock acquisition doubles Cursor's valuation and provides access to xAI's Colossus supercomputer, part of a broader consolidation reshaping the AI industry.
- On Tuesday, SpaceX CEO Elon Musk acquired AI-coding startup Cursor for $60 billion in an all-stock deal, granting the company access to xAI's Colossus supercomputer to train advanced models.
- Cursor provides agentic coding tools and a database with more than one million users, which SpaceX aims to integrate into its AI flywheel to accelerate innovation and improve profit margins.
- Oppenheimer analyst Timothy Horan raised SpaceX's price target to $250 on Thursday, citing the deal's strategic benefits. SpaceX shares have surged 42% since their record-smashing initial public offering last Friday.
- The transaction represents a significant financial windfall for Cursor's roughly 800 employees across the Bay Area, New York, and London. CEO Michael Truell took the stage hours after the acquisition closed.
- Infrastructure dominance—including the Starlink satellite network, Starship rocket, and Terafab chip production facility—positions SpaceX to potentially become the world's largest company. Analysts suggest these combined assets create a difficult-to-replicate moat.
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SpaceX agreed to purchase Cursor for $60 billion. The operation makes billionaires four young founders who started the company at MIT and transformed it into one of the most widely used artificial intelligence programming platforms.
SpaceX’s Newest $60 Billion Bet Might Be Its Best Chance to Surpass Nvidia
The post SpaceX’s Newest $60 Billion Bet Might Be Its Best Chance to Surpass Nvidia appeared first on 24/7 Wall St..Elon Musk’s Space Exploration Technologies (NASDAQ:SPCX) is continuing to rally. A few more big up days like this and SpaceX might have a serious shot at surpassing Nvidia (NASDAQ:NVDA) in market cap for the title of Earth’s largest company. At this pace, count me as unsurprised if the move happens, even as skeptics stay sidelined …
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Coverage Details
Total News Sources14
Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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